Certosimo Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.

Sales (7,000 units)	$ 350,000
Variable expenses	245,000
Contribution margin	105,000
Fixed expenses	97,500
Net operating income	$ 7,500

Required: a. If sales increase to 7,040 units, what would be the estimated increase in net operating income? b. If sales decline to 6,900 units, what would be the estimated net operating income?